[OPE-L:851] Re: Valuation of Inputs & Moral Depreciation

Paul Cockshott (wpc@clyder.gn.apc.org)
Thu, 25 Jan 1996 16:04:44 -0800

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In discussing the accounting conventions used to handle
the accelerated depreciation of machinery due to obsolecence
one must not imagine that the existence of a means of recording
this fact in the accounts, actually allows the losses it
records to be 'recovered'. What this accounting does is tell
the firm that it is not safe to distribute as much profit
as would otherwise be the case without imperiling its capital.